DEGREE OF DECEPTION: SOUTH FLORIDA NURSES GET IN TROUBLE WITH THE LAW AFTER ATTENDING AN UNLICENSED NURSING SCHOOL
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Citing Merck misconduct, jurors find for plaintiff in Vioxx retrial
An Idaho man who alleged that Vioxx caused his 2001 heart attack has prevailed against its manufacturer, Merck & Co., Inc., after he lost his first trial and was granted a new one based on evidence that Merck had withheld safety data. (Humeston v. Merck, No. ATL-L-2272-03 (N.J. Super. Mar. 12, 2007).)

Frederick Humeston’s first trial ended in a defense verdict in November 2005. But after new evidence came to light that Merck had misrepresented the heart attack risk linked to Vioxx, New Jersey Superior Court Judge Carol Higbee vacated that verdict in August 2006.

Higbee is overseeing all the Vioxx cases filed in her state against Merck, based in Whitehouse Station, New Jersey.

In March, jurors awarded Humeston and his wife $20 million in compensatory damages and $27.5 million in punitive damages, voting 8-0 that Merck’s actions “were an extreme deviation from reasonable standards of conduct,” according to the jury verdict form. They determined that Merck failed to warn physicians about the increased risk of heart attacks; that the company intentionally suppressed, concealed, or omitted risk information from physicians and consumers; that Humeston’s doctor would have altered his prescribing decision if he had been adequately warned; and that Vioxx was a substantial contributing factor in Humeston’s heart attack.

Christopher Seeger, a New York City lawyer representing Humeston, said the fact that jurors awarded higher punitive than compensatory damages shows that they believed Merck needed to be punished. “This jury found by clear and convincing evidence that Merck’s conduct was malicious, oppressive, and outrageous,” Seeger said.

Humeston was tried together with another case, Hermans v. Merck. The jurors found that Merck did not fail to warn in Brian Hermans’s case; he died after suffering a heart attack in 2002, five months after Merck changed Vioxx’s label.

The company changed the label after a study called VIGOR (Vioxx Gastrointestinal Outcomes Research), which it sponsored, revealed a statistically significant higher incidence of serious cardiovascular thrombotic events with Vioxx than with naproxen, another nonsteroidal anti-inflammatory drug (NSAID). Merck withdrew Vioxx in 2004.

The Humeston and Hermans trial was conducted in two phases. In the first, which consolidated both cases, jurors considered what Merck knew about the risk of Vioxx, what warnings it gave physicians, and whether those warnings were adequate. In the second, the same jurors determined whether Vioxx caused each plaintiff’s heart attack and damages. The two-phase trial was designed to speed up the cases, because several of them can be tried together on liability and then each can proceed separately on damages, Seeger explained.

Mark Lanier, a Houston lawyer who represents Hermans, called the two-phase trial “a great way to move a large block of cases, but the cases will need to be all in the same time category to avoid the problems inherent in a case like Hermans, where the plaintiff starts taking Vioxx before a label change but has a heart attack after a label change.” He added, “Those cases need individual attention to determine if the label change made a difference.”

Although the jury found against Hermans on failure to warn, Lanier noted that it found in both cases that Merck violated New Jersey’s consumer fraud statute, so the company must pay economic damages and attorney fees and expenses.

So far, Merck has won more Vioxx cases than it has lost, and it has vowed to fight each case in court. Two weeks after the Humeston verdict, a jury in Madison County, Illinois, found in the company’s favor in Schwaller v. Merck. (No. 05L687 (Ill. Cir. Mar. 27, 2007).) Merck has announced it will appeal the result in Humeston.

Among the information that surfaced after Humeston’s first trial was the New England Journal of Medicine’s “expression of concern,” published in December 2005, that the authors of the VIGOR study withheld data, misrepresenting the risk of heart attack from Vioxx.

Other studies have shed light on the risk of intermittent Vioxx use. Merck initially maintained that risk increased only after 18 months of use. (See Allison Torres Burtka, Vioxx Studies Question Timing of Heart Attack Risk, TRIAL 98 (July 2006).)

Seeger said that because Humeston was a short-term user of Vioxx, his case should be encouraging to other short-term-use plaintiffs. The idea that only long-term use is dangerous “has been corrected in the medical literature, and juries see through it, too,” he said.

“For plaintiff lawyers, this is an example of why not to give up,” Seeger said. He added that although Idaho has a $250,000 cap on noneconomic damages, it doesn’t apply to Humeston’s award because the jury found Merck’s conduct to be willful and reckless. Idaho law also limits punitive damages to three times compensatory damages, a cap the award did not exceed.

“These cases add to the momentum that works to the plaintiffs’ advantage over time,” Lanier noted. “I’ve said repeatedly that these cases are very difficult.” He compared them to asbestos litigation, in which defendants won most cases for the first 5 to 10 years.

“Then the momentum shifted” in favor of plaintiffs, he said. In the Vioxx litigation, “these wins will add to that momentum and bring Merck’s reckoning closer.”




Maryland high court expands economic loss exception
Owners of cars whose front seats tend to collapse backward in rear collisions can sue manufacturers for the cost of repairing the alleged defect, even when they have not been injured by it, Maryland’s highest court has ruled unanimously. (Lloyd v. Gen. Motors Corp., 2007 WL 416367 (Md. Feb. 8, 2007).)

The economic loss doctrine bars recovery for economic damages in the absence of an injury. But the court of appeals held that this class of owners can sue four major automakers under an exception that allows plaintiffs to recover economic damages if an alleged defect creates an “unreasonable risk of death or serious injury” and the probability of either occurring is high.

The defect in question deals with a thinly engaged, nonelectric reclining mechanism in front seats that twists and breaks under a driver’s weight in rear collisions at over 30 mph, causing the seat to collapse backward. When the seat collapses, front seat occupants slide up over the seat or are thrown backward, injuring themselves and any occupants in the back seat.

Across the country, attorneys have won individual suits against the defendants—General Motors, Ford, DaimlerChrysler, and Saturn—on behalf of plaintiffs who either died or suffered back injuries, paraplegia, or quadriplegia because of this alleged defect. This is the first time, however, that any court has given a class of owners who have not been injured the green light to sue, attorneys for the plaintiffs in the case said.

“[I]t is exactly the risk of serious bodily injury involved in this case that the exception to the economic loss rule was intended to remedy,” Chief Judge Robert Bell wrote for the court, reversing the lower courts’ decisions. Citing both public policy and the court’s past decisions involving the rule, Bell noted that the exception “advances the practical goal of providing a remedy before the significant loss of life or limb.”

“This is a landmark ruling, nationally,” said Gaithersburg-based William Askinazi, one of three attorneys representing the plaintiffs. “The Lloyd court said that you don’t have to wait to be killed or seriously injured in order to have a cause of action [for a defect] that in other cases is likely to cause significant injury or death,” he said.

The plaintiffs have waited seven years to reach this point—a record in Maryland, according to Askinazi.

Stephen Ring of Germantown, Askinzi’s cocounsel, countered the automakers’ claim that the ruling will open the floodgates of litigation. “The key fact is that the right to sue is particular to those situations where [the possibility] of significant injury or death is limited to the same defect,” Ring said.

The defendants argue that their seats were designed to collapse and that a rigid seat would be more dangerous to drivers and front seat passengers, particularly because it would increase the effect of whiplash in rear collisions.

“That’s just not true. The original design did not call for this,” Ring said, noting that some manufacturers have corrected the alleged defect and the modification has improved safety.

In addition to the negligence and strict liability claims under the exception, the court granted the class standing on six other claims: misrepresentation, fraud, fraudulent concealment, Consumer Protection Act violations, breach of implied warranty of merchantability, and civil conspiracy.

Ring and Askinazi said the National Highway Traffic Safety Administration (NHTSA) has turned a blind eye to the defendants’ failure to remedy the alleged defect. Despite myriad complaints by consumers who have been injured when their car’s front seat collapsed in a rear collision, and ignoring pressure from consumer advocacy groups to update its seat safety standard, the agency has kept in place a standard that is “woefully inadequate,” Askinazi said.

In a January report about its New Car Assessment Program (NCAP), NHTSA acknowledged that “consumers are concerned about rear-impact crashes.”

“In the long term, a dynamic test that addresses those injuries not covered by the agency’s current standards could be investigated as a possible ratings program,” according to the report.

Consumer advocates are not satisfied with that response. “This is not sufficient given the severity of potential injuries from rear-end crashes, especially fires and seat-back failure,” said Public Citizen President Joan Claybrook in testimony in March before NHTSA and the Department of Transportation. She said NHTSA is moving too slowly to institute an NCAP rating for seat-back strength in rear-impact collisions.

“NHTSA has known, ever since fuel-integrity testing in rear-impact crashes above 30 miles per hour revealed widespread failure of front seat backs, that these seats have a dangerous tendency to collapse rearward,” Claybrook said. “NHTSA does currently have a seat-strength standard, but it remains so pathetically inadequate that some believe vehicle seats are held to a weaker standard than lawn chairs.”

“This is as significant a safety issue as defective seat belts and rollovers,” Askinazi said. “It’s the safety issue for this decade. We are proceeding in Maryland and other places to get this defect fixed before other people are harmed.”